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Stifel Financial Corp. Announces 2009 Second Quarter Results
Posted by: gurufocus (IP Logged)
Date: August 10, 2009 04:48PM

Press Release: Stifel Financial Corp. Announces 2009 Second Quarter Results

ST. LOUIS--(BUSINESS WIRE)--Stifel Financial Corp. (NYSE: SF) today reported unaudited quarterly net income of $15.8 million, or $0.51 per diluted share, on record net revenues of $261.5 million for the quarter ended June 30, 2009. For the comparable quarter of 2008, net income was $12.3 million, or $0.45 per diluted share, on net revenues of $209.0 million. For the six months ended June 30, 2009, we posted net income of $29.0 million, or $0.94 per diluted share, on record six month net revenues of $481.5 million, compared with $26.7 million, or $0.99 per diluted share, on net revenues of $420.4 million, for the same period one year earlier. Our 2008 second quarter and first half included acquisition charges of $4.0 million, or $0.15 per diluted share, and $8.0 million, or $0.30 per diluted share, respectively. All prior period share and earnings per share amounts have been retroactively restated to reflect the three-for-two stock split distributed in June 2008.

At June 30, 2009, our stockholders’ equity was $702.7 million, resulting in book value per share of $24.86.

Chairman’s Comments

Chairman and Chief Executive Officer, Ronald J. Kruszewski, commented, “All things considered, we are reporting a very acceptable quarter and first half of the year. Our record second quarter and year to date net revenues were driven by a very strong performance by our capital markets segment, in particular in fixed income sales and trading, which further validates our 2005 acquisition of Legg Mason Capital Markets and our continued commitment to take advantage of opportunities as they arise. While our profit margins have declined as we build our infrastructure to absorb the upcoming conversion of the UBS branches in the third quarter and the organic growth we’ve experienced, we are poised to take advantage of the economies of scale we have added over the past year across all segments.” Mr. Kruszewski continued, “As a result of our previously announced hiring of Victor Nesi as co-head of capital markets, we have changed our management of the equity and fixed income capital markets segments and consequently the reporting of those segments will be combined effective June 30, 2009 and retrospectively.”

 
Stifel Financial Corp.
Summary of Results of Operations (Unaudited)
($ In Thousands, Except Per Share Amounts)
 
  Three Months Ended   Percent Change From     Six Months Ended  
6/30/2009   3/31/2009   6/30/2008 3/31/2009   6/30/2008 6/30/2009   6/30/2008 % Change
Total Revenues $ 264,550 $ 222,332 $ 214,020 19 % 24 % $ 486,882 $ 431,262 13 %
Net Revenues $ 261,505 $ 219,981 $ 208,951 19 % 25 % $ 481,486 $ 420,428 15 %
Net Income $ 15,815 $ 13,177 $ 12,332 20 % 28 % $ 28,992 $ 26,679 9 %
                                   
Per Share Information
 
Three Months Ended Percent Change From Six Months Ended
6/30/2009 3/31/2009 6/30/2008 3/31/2009 6/30/2008 6/30/2009 6/30/2008 % Change
Earnings Per Share: Diluted $ 0.51 $ 0.44 $ 0.45 16 % 13 % $ 0.94 $ 0.99 -5 %
Weighed average common equivalent share

Computations: Diluted shares

31,270 30,198 27,229 4 % 15 % 30,752 26,931 14 %
       

 

                         
 
 
 
Stifel Financial Corp.
Summary of Results of Operations (Unaudited)
($ In Thousands, Except Per Share Amounts)
 
  Three Months Ended   Percent Change From   Six Months Ended  
6/30/2009   % of Net Revenues   3/31/2009   % of Net Revenues   6/30/2008   % of Net Revenues 3/31/2009   6/30/2008 6/30/2009   % of Net Revenues   6/30/2008   % of Net Revenues % Change
Revenues
Commissions $ 80,721 30.9 % $ 74,610 33.9 % $ 83,063 39.8 % 8 % -3 % $ 155,331 32.3 % $ 168,764 40.1 % -8 %
Principal transactions 121,261 46.4 % 97,278 44.2 % 65,674 31.4 % 25 % 85 % 218,539 45.4 % 132,611 31.6 % 65 %
Investment banking 24,702 9.5 % 15,504 7.1 % 20,935 10.0 % 59 % 18 % 40,206 8.4 % 42,779 10.2 % -6 %
Asset management and service fees 24,543 9.4 % 24,933 11.3 % 29,966 14.3 % -2 % -18 % 49,476 10.3 % 60,244 14.3 % -18 %
Other   2,739 1.0 %   115 0.1 %   1,715 0.8 % 2282 %   60 %   2,854 0.4 %   508 0.1 % 462 %
Total operating revenues   253,966 97.2 %   212,440 96.6 %   201,353 96.3 % 20 %   26 %   466,406 96.8 %   404,906 96.3 % 15 %
Interest revenue   10,584 4.0 %   9,892 4.5 %   12,667 6.1 % 7 %   -16 %   20,476 4.3 %   26,356 6.3 % -22 %
Total revenues   264,550 101.2 %   222,332 101.1 %   214,020 102.4 % 19 %   24 %   486,882 101.1 %   431,262 102.6 % 13 %
Less: Interest expense   3,045 1.2 %   2,351 1.1 %   5,069 2.4 % 30 %   -40 %   5,396 1.1 %   10,834 2.6 % -50 %
Net revenues   261,505 100.0 %   219,981 100.0 %   208,951 100.0 % 19 %   25 %   481,486 100.0 %   420,428 100.0 % 15 %
Non-Interest Expenses
Employee compensation and benefits 175,881 67.3 % 147,840 67.2 % 144,795 69.3 % 19 % 21 % 323,721 67.3 % 290,825 69.2 % 11 %
Occupancy and equipment rental 20,714 7.9 % 17,867 8.1 % 16,010 7.6 % 16 % 29 % 38,581 8.0 % 31,726 7.5 % 22 %
Communication and office supplies 13,129 5.0 % 11,845 5.4 % 9,748 4.7 % 11 % 35 % 24,974 5.2 % 21,695 5.2 % 15 %
Commissions and floor brokerage 6,321 2.4 % 4,360 2.0 % 3,486 1.7 % 45 % 81 % 10,681 2.2 % 3,967 0.9 % 169 %
Other operating expenses   19,351 7.4 %   15,914 7.2 %   14,762 7.1 % 22 %   31 %   35,265 7.3 %   28,140 6.7 % 25 %
Total non-interest expenses   235,396 90.0 %   197,826 89.9 %   188,801 90.4 % 19 %   25 %   433,222 90.0 %   376,353 89.5 % 15 %
Income before income taxes   26,109 10.0 %   22,155 10.1 %   20,150 9.6 % 18 %   30 %   48,264 10.0 %   44,075 10.5 % 10 %
Provision for income taxes   10,294

Stocks Discussed: SF,
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